Bill Burne's earnings are subject to deductions for Social Security, Medicare, and FIT. To date his cumulative earnings are $110,000. This week Bill earns $1,200. Bill, who is married, is paid weekly and claims three exemptions. Assume the Social Security rate is 6.2% on $118,500 and 1.45% for Medicare. His net pay for the week is (use percentage table in handbook to calculate FIT):

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Bill's Social Security deduction is $74.40 (6.2% of $1,200), and Medicare is $17.40 (1.45% of $1,200). FIT is calculated using the percentage table for a married person with three exemptions. After all deductions, the net pay is $1,005.30.

Bill Burne's Earnings Are Subject to Deductions for Social Security